Problem 12-22 Special Order Decisions [LO12-4] Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this level of production and sales are given below: Unit Total Direct materials $ 25 $ 850 , 000 Direct labor 6 204 , 000 Variable manufacturing overhead 3 102 , 000 Fixed manufacturing overhead 5 170 , 00 0 Variable selling expense 4 136 , 000 Fixed selling expense 6 204,000 Total cost $ 49 $ 1,666,000 ' The Rets normally sell for $54 each. Fixed manufacturing overhead is $170,000 per year within the range of 24,000 through 34,000 Rets per year